The Diagnostic Emulation Technique was developed within the System Validation Methods Branch as a part of the development of methods for the analysis of the reliability of highly reliable, fault tolerant digital avionics systems. This is a general technique which allows for the emulation of a digital hardware system. The technique is general in the sense that it is completely independent of the particular target hardware which is being emulated. Parts of the system are described and emulated at the logic or gate level, while other parts of the system are described and emulated at the functional level. This algorithm allows for the insertion of faults into the system, and for the observation of the response of the system to these faults. This allows for controlled and accelerated testing of system reaction to hardware failures in the target machine. This document describes in detail how the algorithm was implemented at NASA Langley Research Center and gives instructions for using the system.